UCO BANK

UCO BANK
FINANCIAL RESULTS JUNE-2010

OUR-VISION
TO EMERGE AS THE MOST TRUSTED, ADMIRED AND SOUGHT-AFTER WORLD CLASS FINANCIAL INSTITUTION AND TO BE THE MOST PREFERRED DESTINATION FOR EVERY CUSTOMER AND INVESTOR AND A PLACE OF PRIDE FOR ITS EMPLOYEES

OUR-MISSION
TO BE A TOPCLASS BANK TO ACHIEVE SUSTAINED GROWTH OF BUSINESS AND PROFITABILITY, FULFILLING SOCIOECONOMIC OBLIGATIONS, EXCELLENCE IN CUSTOMER SERVICE THROUGH UPGRADATION OF SKILLS OF STAFF, THEIR EFFECTIVE PARTICIPATION AND MAKING USE OF STATE-OF-THE-ART TECHNOLOGY

Organizational & Reporting Structure

Board Of Directors
Chairman & Managing Director Executive Director I Executive Director II

Corporate GMs (12) & FGMs (8)

Zones (35) Branches (2156) General Banking (2066) Specialized Branches (86) Overseas Branches (4)
Rep. Offices (2)

Treasury(1), Service(20), FC/MC(35), Asst.Mgt(5), SME(25)

Branch Network
All 2156 branches spread across India and abroad are under CBS Live Presence in all States and Union Territories of India Two-Third network in Rural/Semi-Urban areas SLBC responsibilities in the states of H.P and Orissa Lead Bankers in 34 districts spread over 7 states Sponsored 5 RRBs in 5 States Over 50 operations years of experience in international

Two branches each in Hong Kong and Singapore Centres Representative Offices in Kuala Lumpur in Malaysia and Guangzhou in Republic of China Correspondent banking relationship with 15 Banks in 13 countries

Branches
2500 2000 1500 1000 500 0 1849 1961 2069 2152 2156

1744

FY 2005-06

2006-07

2007-08

2008-09

2009-10 30/6/2010

Performance Highlights
[June 2009 - June 2010]

Parameters Business Deposits Advances Investment

Trend

Absolute Rs. in Cr. 31,815 18,448 13,366 6,418

% Growth 18.85 18.37 19.55 19.63

Business Growth Comparative Performance

Global
Business Deposit Advances Investment June-09 June-10 Amt 1,68,808 1,00,428 68,380 32,688 2,00,623 1,18,876 81,746 39,106

(Rs. Cr.)

Y-o-Y- Growth %

31,815 18.85 18,448 18.37 13,366 19.55 6,418 19.63

Business Growth Comparative Performance

Domestic
Business June-09 June-10 Amt 1,58,677 1,87,604 28,927

(Rs. Cr.)

Y-o-Y Growth % 18.23

Deposit Advances Investment

94,797 1,12,046 63,880 30,998 75,558 38,077

17,249 11,678 7,079

18.20 18.28 22.84

Business Growth Comparative Performance

Overseas
Business Deposit Advances Investment June-09 June-10 Amt 10,131 5,631 4,500 1,689 13,018 6,830 6,188 1,029

(Rs. Cr.)

Y-o-Y Growth

2,887 28.50 1,199 21.30 1,688 37.52 -660 -39.10

Business - Deposits - Advances - A Comparative Performance

250000 200000 150000 100000 50000 0 June 2005 2006 Business 2007 Deposit 2008 2009 Advances 2010

200623 168808 133960 92980 76964 47276 55966 106166 63056 43110 78236 55724 68380 81746 100428 118876

Rs. Cr.

29688 37014

Capital Adequacy Ratio (Basel-II)

14 13.5 13
CAR (%)

13.61

12.5 12 11.5 11 10.5 10 Jun-08 Jun-09 Jun-10 11.39 11.67

PARAMETERS

Financial Results Comparative Performance Global Q1

2009-10 2,331 252 2,584 1,904 369 2,273 427 310 131 179 2010-11 Amt. (Rs. Cr.) 2,672 190 2,862 1,736 481 2,217 937 645 385 260 Growth % 341 -62 278 -168 112 -56 14.63 -24.60 10.76 -8.82 30.35 -2.46

INTEREST INCOME OTHER INCOME TOTAL INCOME INTEREST PAID OPTG EXPENSES TOTAL EXPENSES NET INT INCOME OPTG PROFIT PROVISIONS NET PROFIT

510 119.44 335 108.07 254 193.89 81 45.49

Financial Results Comparative Performance

PARAMETERS
INTEREST INCOME OTHER INCOME

Domestic Q1
2009-10 2,274 245 2,519 1,857 358 2,215 417 304 132 172 2010-11 Amt. (Rs. Cr.) 2,627 180 2,807 1,712 471 2,183 915 624 383 241 353 -65 288 -145 113 -32 498 320 251 69 Growth % 15.52 -26.53 11.43 -7.81 31.56 -1.44 119.42 105.26 190.15 40.11

TOTAL INCOME
INTEREST PAID OPTG EXPENSES TOTAL EXPENSES NET INT INCOME

OPTG PROFIT
PROVISIONs

NET PROFIT

Financial Results Comparative Performance PARAMETERS

INTEREST INCOME OTHER INCOME TOTAL INCOME INTEREST PAID OPTG EXPENSES TOTAL EXPENSES NET INT INCOME OPTG PROFIT PROVISIONs NET PROFIT

Overseas Q1
2009-10 58 7 65 48 11 59 10 6 -1 7 2010-11 Amt. (Rs. Cr.) 46 10 56 24 10 34 22 22 3 19 -12 3 -9 -24 -1 -25 12 16 2 12 Growth % -20.68 42.86 -13.85 -50.00 -9.09 -42.37 120.00 266.67 100.00 171.43

Operating Profit - Net profit -A comparative position

700 600 500 400 300 200 100 0

645

Rs. Cr.

310 159 45
Jun-05

207 62
Jun-06

217 133

228 134

260

179

Jun-07

Jun-08
Net Profit

Jun-09

Jun-10

Op. Profit

Components of Deposits
Global (Rs. Cr.)
Type of Deposits
Demand Deposit SB Deposit Low cost Deposit Term Deposit Total Deposit June-08 June-09 June-10 Y-o-Y (%) 44.51 30.80 34.17 13.70 18.37

4,919 15,129 20,048 58,187

5,616 17,253 22,869 77,559

8,116 22,568 30,684 88,192 1,18,876

78,235 1,00,428

Performance Indices (%)

Global
Yield on Advances (%) Yield on Investment (%) ( Excluding Recap Bonds ) Cost of Deposit (%) Spread Staff Cost (% of AWF) Return on Assets (%) Op. Profit (% of AWF) BPE ( Rs. in crores ) June-09 10.48 6.99 7.08 1.74 0.91 0.64 1.11 7.36 June-10 9.85 7.36 5.44 3.07 1.06 0.79 1.96 8.88

Performance Indices (%)

Domestic
Yield on Advances (%) Yield on Investment (%) ( Excluding Recap Bonds ) Cost of Deposit (%) Spread Staff Cost (% of AWF) Op. Profit (% of AWF) June-09 11.11 7.27 7.41 1.92 0.95 1.17 June-10 10.47 7.56 5.71 3.26 1.11 2.02

NPA Management
Global
Gross NPA (Opening Balance) FRESH GENERATION Cash Recovery Upgradation Total Recovery Write-off TOTAL REDUCTION GROSS NPA (Closing Balance) NET NPA (Closing Balance) Gross NPA Ratio (%) Net NPA Ratio (%) Recovery in W/O Accounts Coverage Ratio (%) June-2008 Rs. Crores 1,652 149 159 52 211 19 230 1,571 1,053 2.82 1.91 9 32.94 June-2009 Rs. Crores 1,540 125 68 39 107 3 110 1,555 776 2.27 1.15 4 50.10 June-2010 Rs. Crores 1,666 416 83 64 147 6 153 1,929 919 2.36 1.14 7 58.04

Achievements in Priority Sector Lending Parameter

Total P .S. Lending Agriculture Credit Advances to Weaker Sections Advances to MSE Sectors Rs. in Crore Actual Actual Y-o-Y June09 June10 Growth
(%)

24,848 11,252 5,975 6,554

27,003 14,132 6,740 8,522

8.67 25.59 12.80 30.02

Technology Initiatives
2,152 Branches and 7 Extn. Counters brought under CBS covering 100% of business In all 4 UCO Mobile Banks (Branch on Wheels) launched. During this fiscal, 100 mobile vans of both (with Biometric ATM and without ATM) models are planned for deployment to meet implementation of Financial Inclusion initiative in a big way 500 ATMs (340 On site and 160 Off site) installed (22 ATMs added during the quarter)

Technology Initiatives
(contd.)
9.66 lacs VISA Debit Cards activated (0.40 lacs added during this quarter) 12,499 Corporate customers (980 added during this quarter) and 28,774 Retail customers (2,108 added during this quarter) registered under eBanking 2,152 branches are RTGS/NEFT Live RTGS & NEFT implemented through e-Banking a landmark achievement in our IT initiatives Govt. Business Module implemented in all branches Workshop on MIS Codes at 25 Zones has been completed covering 750 branches.

Performance Highlights :
Risk Management Deptt.
Base Rate linked Rate of Interest structure was put in place w.e.f. 01/07/2010 Following Policies/Policy Reviews were also put in place during the quarter: Enhancement to ICAAP Policy Comprehensive Stress Testing Policy Loan Policy 2010 ALM Policy Credit Risk Mitigation and Collateral Management Policy

Initiatives of Recovery Deptt.

To augment recovery, a good number of fresh initiatives/Incentive Scheme have been taken as under:Holding of country-wide Mega Recovery Camps besides normal recovery camps Introduction of Cash Incentive Scheme for recovery made by the members of the staff (Protsahan Yojana) Formation of Steering Committee at each branch for recovery Sale of NPA to Asset Reconstruction Companies.

Retail & Para Banking Initiatives

Strategic alliances with leading car manufacturers of the country have given a boost to the Car Loan Portfolio of the Bank. Car Loans have registered a y-0-y growth of 77% during the period. Education Loan financing has also got a boost through the On-Line application system. Education Loans registered a y-o-y growth of 35% during the period. Workshop was conduced for review of functioning of Central Processing Centres at Chennai and action points as emerged were implemented for increasing the effectiveness in the working of the CPCs.

Retail & Para Banking Initiatives

(contd.) Workshop for Zonal Marketing Officers was also conducted to review their present functioning and to brig about more focus to the marketing function at Zones. The fee based income from Bancassurance and NonLife/General Insurance during the quarter registered a yo-y growth of 19.66% and 52.27% respectively. Launched UCO Griha Raksha Policy in association with Reliance General Insurance Company with a view to offer term cover to the assets created by the Banks UCO Shelter borrowers by way of a single premium against perils like fire and earthquake at a very competitive cost.

Initiatives in the area of Corporate Communication

Achievement of 2 lakhs crores business by the Bank during FY 2009-10 was published in the Times of India and Economic Times through front-page advertisements. Bank received good publicity mileage out of this campaign. The unique initiative of launching CBS enabled UCO Mobile Bank (Branch on wheels) was advertized prominently in newspapers in West Bengal. Apart from this, outdoor campaign was done in villages covered by the Mobile Banking Unit for creation of awareness about availability of banking services at doorstep of villagers. To promote Banks education loan and e-banking products, advertisements wee released in Newspapers & Magazines. During the quarter, the Bank gave donations to Arya Varat Special School at New Delhi for purchase of vehicle for physically challenged children.

HR Initiatives
As an initiative for Staff Welfare, the Bank has introduced Group Mediclaim Insurance Scheme for the retired employees with their spouse with effect from 14.04.2010. The Scheme provided reimbursement of expenses to the extent of Rs.1.00 lac on floater basis in case of hospitalization of the exemployees and their spouse who join the Scheme. One Company Secretary has been recruited Recruitment process for 1000 posts in Clerical Cadre spread over 23 States and 4 Union Territories is on

Socio-Economic Initiatives
Adopted Kajiyana and Khalispur villages in RaeBareli district of U.P . Mrs. Sonia Gandhi, Honble Chairperson of UPA Govt. and
MP from Rae-Bareli, inaugurated the village adoption programme at a function at Kajiyana village on 18.05.2010. Mrs. Gandhi also launched the three-year Village Development Plan drawn up by the Bank for total credit inclusion of the villages. The Bank has also formulated a special scheme for lending to Women SHGs, at a concessional rate of interest sponsored by Rajiv Gandhi Mahila Vikas Pariyojna, Rae-Bareli. On the occasion, a Credit Camp was organized, where Mrs. Gandhi distributed loan sanction letters to 519 borrowers amounting to Rs.87 lacs. Mrs. Gandhi also flagged off UCO MOBILE BANK at that centre.

So far, the Bank has adopted 10 Villages under its UCO SAMAGRA GRAMIN VIKAS YOJNA.

Mrs. Sonia Gandhi distributing Loan Sanction Letters to the borrowers

UCO Banks Commitment to Rural

Progress continues .
Under our Corporate Social Responsibility commitment, the Bank has decided to develop the road from Raghunathganj to Bagha Village, which was adopted by the Bank on 02.01.2010. Shri Pranab Mukherjee, Honble Union Finance Minister laid the Foundation Stone on 11.07.2010 for the purpose and also inaugurated a credit camp in presence of Shri Ajai Kumar, ED. Shri Mukherjee, in his address to the villagers duly appreciated the efforts of UCO Bank. The Bank has opened yet another Rural Self Employment Training Institute (RSETI) at Solan (Himachal Pradesh). As such, our total RSETIs in operation in the country are 10 (ten).

Thrust Areas for FY 2010-11

Steady increase in low cost deposit round the year Credit delivery to ensure asset quality Focus on Mid Corporate, Retail and SE Advances Focused vigil on reduction in fresh generation of NPA Profit planning To become GREEN BANK by implementing Solar Energy in Branches To make UCO a truly World Class Financial

Institution

UCO BANK